Söderling, Ludvig; Simonovska, Ina - International Monetary Fund (IMF) - 2008
We investigate sources of economic fluctuations in Chile during 1998-2007 within the framework of a standard … neoclassical growth model with time-varying frictions (wedges). We analyze the relative importance of efficiency, labor, investment …, and government/trade wedges for business cycles in Chile. The purpose of this exercise is twofold: (i) focus the policy …